Stakeholders In A Construction Project

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Who are the stakeholders in a construction process? According to McElroy and Mills (2000) project’s stakeholders are a person or a group of people who have a vested interest in the success of a project and the environment within which the project operates. Stakeholders in the construction industry can be classified as primary and secondary stakeholders. Client/ Owner, Contractor, Consultant, and PM who is directly connected to the project are primary stakeholders and secondary stakeholders are those who have indirect connection to the project who can either affect or be affected by the course of the project, like investors, suppliers, employees, sub-contractors, third-party, banks, governmental authorities, pressure groups, trade associations, and communities. (Malkat and Gyoo, 2012)
From an owner’s perspective, his role in a construction project is associated with the entire life cycle of the building. An owner conceives a project to meet market demands, considers various alternatives to a design and analyze its feasibility. He arranges for the financing needs for the project. Once the project scope, detailed design documents and estimates are in place he works hand in hand with the contractors to oversee the construction process of the building. He plays a major role in planning and controlling material handling on the site. Finally, the owner is responsible of managing the building facility, from project completion until disposal of the facility. (Hendrickson, 1998)
According to CMAA, it is Owner’s responsibility to make an early and important decision about the project delivery method he wants to adopt. With the wealth of choices ...

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...ture project Initiation, financing, and execution,” McKinsey and company. , New York City, NY.
Construction Management Association of America. “An Owner’s Guide to Project Delivery Methods.” <> (Apr.20 2014)
Hendrickson, C. (1998). Project Management for Construction Fundamental Concepts for Owners, Engineers, Architects and Builders. Prentice hall, Pittsburgh, PA.
Malkat, M., and Gyoo, K.-B. (2012). “An Investigation on the Stakeholders of Construction Projects in Dubai and Adjacent Regions.” International Proceedings of Economics Development & Research, Dubai, UAE, Vol. 45, p77.

McElroy, B. and Mills, C., 2000, “Managing stakeholders” in: Turner, R.J. Sinister, S.J., (Eds), Gower handbook of project management 3rd ed., Gower Publishing Limited, Aldershot, UK, 757-75.

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